Smaller houses, townhouses and units in the Mornington area are perfect for attracting tenants and downsizers
“Locals who are looking to invest or downsize now account for a majority of luxury apartment sales”–Crown Group
The unit is very much becoming a lifestyle choice. Older retirees may have moved into their holiday home in Portsea or Sorrento for a few years for tax purposes. The garden may have become too big for them to maintain and they’re looking to move up the coast, closer to services and family. I was able to convince my father-in-law to make a move from Melbourne to Mornington, and we appreciate his time spent with the grandkids. Smaller houses, townhouses and larger units in the area are perfect for attracting this type of buyer or renter. Walk-in, weekend-ready properties with high finishes close to our cafe culture and beaches are sought after. New units and smaller residences mean less upkeep within striking distance of town. Bigger isn’t necessarily better if you can get within 20 minutes’ walk of services and a ten-minute drive for babysitting duties.
“Melbourne’s overall house rental price median fell for the first time in seven years.” –Domain Rental Report, June 2019
As rental properties, units are still a solid choice. While rent prices dropped in metro areas, we have the opposite situation. Gross rental yield is healthy for units, at 4.1% for a two-bed in September. Take advantage of negative gearing, treat it like a business and make sure you’re maintaining the property to make it more appealing to tenants. Anything you do to improve the property adds value over time until you’re ready to resell.
“Units and apartments have consistently outperformed houses through the downturn.”-Corelogic
If it’s a step on the ladder to your forever home or a weekend investment, you want a unit that holds its value as you build equity for the next move. If you’ve got the chance to buy a newer building or unit now – I’d say absolutely, go ahead. They have all the latest and greatest features. There’s no rush, but there’s no risk either, especially on the Peninsula.
Search our property listings and filter by type “unit” for prime examples.
Robert Bowman is a licensed estate agent, auctioneer and proud Mornington Peninsula local.
Contact him on 0417 173 103 or email for advice on buying and selling, building investment portfolios and new developments.
Written for Bowman & Company Real Estate.